Pound Sterling Price News and Forecast: GBP/USD retreated from fresh two-year highs but still has chances of advancing further
|GBP/USD takes out key resistance and eyes fresh highs
GBP/USD is trading at 1.3678 within a range of 1.3645 and 1.3682 at the time of writing. The pound is higher by some 0.22% on the day so far after it rallied as far as 1.3718 overnight.
The risk mood improved before the prices faded to 1.3650. It was the combination of heightened risk appetite in global markets and UK-specific optimism that sent the pound to new highs, the highest since 2018.
GBP/USD Forecast: Risk is still skewed to the upside
The GBP/USD pair reached a fresh two-year high of 1.3718 this Wednesday but quickly trimmed intraday gains, to close the day with modest gains in the 1.3640 price zone. The UK released December inflation data earlier in the day, which were slightly better than anticipated. The CPI was up by 0.6% YoY, better than the 0.5% anticipated, while the core annual reading printed at 1.4%, also above the market’s forecast. The Producer Price Index in the same month also improved.
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